The document discusses ROMI (return on marketing investment) analysis methodology using genetic modeling and regression. It involves building models using a large number of variables from various data sources to identify complex relationships between marketing expenditures and sales/outcomes. Case studies on HP small business marketing and US Navy recruiting are presented, showing variables that positively impact sales, leads, and contracts. The approach helps determine the most cost-effective variables and estimate return per dollar spent on different marketing activities.
An improved business operating model enabled through a cost-effective 3PL agreement can be a game-changer if terms are thoroughly evaluated and properly negotiated.
An improved business operating model enabled through a cost-effective 3PL agreement can be a game-changer if terms are thoroughly evaluated and properly negotiated.
If you are like me and suffer from frequent panic and anxiety attacks as I used to, then you may want to continue reading my story. I was able to change my life completely even if you suffer half as much as I did your life can take a dramatic turn for the better just as mine did.
Бизнес-кейс: Zingaya Click-to-Call (онлайн звонок) для повышения эффективност...Michael Kozloff
Описание преимуществ использования звонка из браузера для повышения качества обслуживания клиентов на примере финансовых организаций и внедрения Zingaya в банке Ренессанс Кредит
If you are like me and suffer from frequent panic and anxiety attacks as I used to, then you may want to continue reading my story. I was able to change my life completely even if you suffer half as much as I did your life can take a dramatic turn for the better just as mine did.
Бизнес-кейс: Zingaya Click-to-Call (онлайн звонок) для повышения эффективност...Michael Kozloff
Описание преимуществ использования звонка из браузера для повышения качества обслуживания клиентов на примере финансовых организаций и внедрения Zingaya в банке Ренессанс Кредит
Spring 2018 Lecture 2 ECO 526 Business Strategy .docxwhitneyleman54422
Spring 2018
Lecture 2
ECO 526: Business Strategy
Plan
Review of basic economics framework for
business strategy
Costs
Demand
Surpluses
Value creation and capture
Strategy preliminaries
Costs
Economic Costs = Accounting Costs +
Opportunity Costs
Opportunity Costs: Value of forgone
alternatives (explicit or hidden)
Why consider opportunity costs?
Examples
Opportunity Costs and Profits
Profits = Total Revenues – Total Costs
Economic Profits = Total Revenues –
(Accounting Costs + Opportunity Costs), or
(Total Revenues – Accounting Costs) – Opportunity Costs
Terminology
Positive Economic Profits = Profits in Excess of
Opportunity Costs
Zero Economic Profits = Opportunity Costs
Competition pushes profits toward…
Opportunity Costs and EVA
Empirical Study: “EVA. An Analysis of Market
Reaction,” by Deyá Tortella and Brusco (2003)
Sample of 65 firms from various sectors that introduced
the EVA technique
No significant short term abnormal returns
Significant performance improvement in the long run
Adoption provides incentives for increased and more
selective investment activity
Adoption has positive effect on cash flow measures
Methodology…
Deyá Tortella and Brusco Sample
Costs in the Short and Long Run
Short run
Long run
Average and Marginal Costs
Average Cost: Cost per unit
AC = TC/Q
Marginal Cost: Cost of an additional unit
MC = TC/Q
Marginal pulls average in the same direction
Focus on marginals
Typical Short Run AC and MC Curves
Typical Long Run AC and MC Curves
Empirical Long Run AC Curves
Estimated LRAC
Q
$
More Cost Terminology
Avoidable Costs: May be at least partially recovered
once they are incurred
Unavoidable (Sunk) Costs: Gone forever once incurred
Do sunk costs matter?
Strategic implications of manipulating sunk and
avoidable costs
Commitments
Avoidable vs. Unavoidable Costs
Fixed and variable vs. avoidable and sunk
Fixed Sunk?
Avoidable Variable?
Some fixed costs may be avoidable
Resale
Alternative use
Rental
Salvage
Some variable costs may be unavoidable
Severance pay/job security
Delivery/consulting contracts
Demand
Demand is a function
Q = f(P)
Quantity demanded is a value of the function
Inverse demand and interpretation
P = g(Q)
Demand Function
D
Price
Quantity
P1
P2
Q1 Q2
A
B
Shifts and Movements within and
along Demand Functions
A to B?
A to C?
D1
D2
Price
Quantity
P1
P2
Q1 Q2 Q2’
A
B
C
Demand Elasticity
Measures how sensitive quantity demanded is to
changes in price
ɛ = % Quantity/% Price
Elastic vs. Inelastic
Determinants
Substitutability
Item “size”
Necessity or “luxury”
Time length of demand definitio.
ABCs of Brand Advertising
This hands-on workshop will teach you how top brand advertisers use the web for marketing, what it takes to get their attention and how you can create innovative programs for brand advertisers.
Led by Shari Gunn, Vice President Advertising & Business Development, Kaboodle , Director, Marketing, Hearst Digital Media, VP, Marketing, Primedia’s Automotive Enthusiast Group
Churn in the Telecommunications Industryskewdlogix
Strategic Business Analysis Capstone Project Telecommunications Churn Management
Churn is a significant problem that costs telecommunications companies billions of dollars through lost revenue. Now that the market is more mature, the only way for a company to grow is to take their competitors customers. This issue
combined with the greater choice that consumers have gained means that any adverse touch point with a consumer can result in a lost customer.
Content Management: Where's the ROI in CMS?pshibles
Content management systems can cost you as little as free or as much as seven-figures. Learn how to figure out what you can afford and avoid setbacks caused by going for the cheapest option. Get CEO and CFO support for your CMS project.
Please Answer A(300-350 words) ,B(300 words),C(300-350 words),D (300 words) and respond to three articles with 150 words each
A. Using the Internet, review at least 3 articles on Profit-Cost-Volume relationship. Summary (300 -350 words or more) the articles in your own words.
B. As a manager, why is Profit-cost-volume important in planning? Support your response with numerical example(s)
C. Using the Internet, review at least 3 articles on Variable Costing. Summary (300 -350 words or more) the articles in your own words.
D. As a manager, discuss how you would use Variable Costing in managerial decisions Support your response with numerical example(s)1) Respond to 1st article with 150 words
A)The cost-volume-profit analysis can be defined as a method or way that is where the cost accounting may be looking with them for an impact over varying at different levels of their costs or the volume of not having their operational profits. They would also be called as an analysis, that is commonly used as break-even analysis, that is used for looking for determining them through a break even points over different kind of sales of volumes and through costs with their structures, that would be used with their managers to making some kind of short-term of their economic decisions.
With having cost-volume-profit analysis makes the several assuming, includes their sealing price, fixed costs, or variable cost per unit should be constant. And by running over the analysis involving several different equations with their price, cost and all other variables, that are plotted over the graph. By contributing the margin use over the determination of break-even point of sales. And dividing total fixed costs would be contributing their margin ratio, break-even point be with the sales in terms of total dollars should be calculated.
In other words, CVP can be more as management account tools that is very expressive with the relationship between total sales, total cost and profit. The CVP relationship could be with the one that is very important tool of cost or the management accounts. It is having the powerful technique with furnishing complete picture of what is the profit structure and it would be helping them through planning for their profits. They would be answering through what kind of questions been with what telling being with the volume of requirement to produce. The concepts over with the relevant to have any decision-making areas, for them to be particular with any short run.
As break-even analysis is any kind of subset that a cost-volume-profit (CVP) analysis, that may be with them through using a management that is helping their understanding with the relationships between cost, sales volume and profit. The tools and the techniques be major focuses over with how to have selling, sales volume, variable, fixed or mixing of the products that would be selling through affects over the profits.
B) With having an understanding of all the basic tenets of CV.
Please Answer A(300-350 words) ,B(300 words),C(300-350 words),D (300 words) and respond to three articles with 150 words each
A. Using the Internet, review at least 3 articles on Profit-Cost-Volume relationship. Summary (300 -350 words or more) the articles in your own words.
B. As a manager, why is Profit-cost-volume important in planning? Support your response with numerical example(s)
C. Using the Internet, review at least 3 articles on Variable Costing. Summary (300 -350 words or more) the articles in your own words.
D. As a manager, discuss how you would use Variable Costing in managerial decisions Support your response with numerical example(s)1) Respond to 1st article with 150 words
A)The cost-volume-profit analysis can be defined as a method or way that is where the cost accounting may be looking with them for an impact over varying at different levels of their costs or the volume of not having their operational profits. They would also be called as an analysis, that is commonly used as break-even analysis, that is used for looking for determining them through a break even points over different kind of sales of volumes and through costs with their structures, that would be used with their managers to making some kind of short-term of their economic decisions.
With having cost-volume-profit analysis makes the several assuming, includes their sealing price, fixed costs, or variable cost per unit should be constant. And by running over the analysis involving several different equations with their price, cost and all other variables, that are plotted over the graph. By contributing the margin use over the determination of break-even point of sales. And dividing total fixed costs would be contributing their margin ratio, break-even point be with the sales in terms of total dollars should be calculated.
In other words, CVP can be more as management account tools that is very expressive with the relationship between total sales, total cost and profit. The CVP relationship could be with the one that is very important tool of cost or the management accounts. It is having the powerful technique with furnishing complete picture of what is the profit structure and it would be helping them through planning for their profits. They would be answering through what kind of questions been with what telling being with the volume of requirement to produce. The concepts over with the relevant to have any decision-making areas, for them to be particular with any short run.
As break-even analysis is any kind of subset that a cost-volume-profit (CVP) analysis, that may be with them through using a management that is helping their understanding with the relationships between cost, sales volume and profit. The tools and the techniques be major focuses over with how to have selling, sales volume, variable, fixed or mixing of the products that would be selling through affects over the profits.
B) With having an understanding of all the basic tenets of CV.
Managed Services in 2014: Pricing and Positioning - Dave SobelMAXfocus
Managed Services in 2014 has grown and changed. Cloud and mobility change the model from strictly device management to a complex eco-system of management. Through analysis of the latest market data, Dave Sobel, GFI MAX’s Director of Partner Community, will show proven techniques for building a pipeline of interested customers ready to invest in their IT and deliver annuity revenue at higher margin. Discussion will include go-to-market techniques and pricing models for a variety of managed services, from traditional to backup to mobile.
Challenges in building a churn prediction model in different industries, presented by Jelena Pekez from Comtrade System Integration. Talk is focused on real-life use-case experience.
Version April 26, 2000Sunil Chopra is the IBM Distinguish.docxjessiehampson
Version: April 26, 2000
Sunil Chopra is the IBM Distinguished Professor of Operations Management and Jan Van Mieghem is an Associate
Professor of Operations Management; both are at the Kellogg Graduate School of Management at Northwestern University.
Both are co-authors of "Managing Business Process Flows" (Prentice Hall 1999). Professor Chopra also is the co-author
of the new textbook "Designing and Managing Supply Chain Flows," (to be published by Prentice Hall), which inspired this
article.
Copyright 2000. All rights reserved, contact [email protected]
1
WHICH E-BUSINESS IS RIGHT FOR YOUR SUPPLY CHAIN?
by Sunil Chopra and Jan A. Van Mieghem
(Forthcoming in Supply Chain Management Review)
The Internet is revolutionizing the way companies
conduct business. Or is it? We argue that the value of
the Internet for a firm is strongly dependent on the firm’s
industry and on the strategy it pursues. A survey of firms
with an online presence displays wide disparities in
performance. While Dell has successfully used the
Internet to boost revenues and earnings, Amazon lost
$585 million on revenues of $1.6 billion in 1999. Firms
that fully exploit the revenue enhancements and cost
reduction opportunities offered by the Internet and
optimally integrate e-business with existing channels are
likely to be the big winners in the Internet age.
The Role of E-business in a Supply Chain
E-business involves the execution of business
transactions over the Internet. Companies conducting e-
business perform some or all of the following activities
over the Internet across the supply chain:
• Providing product and other information
• Negotiating prices and contracts
• Placing and receiving orders
• Tracking orders
• Filling and delivering orders
• Paying and receiving payment.
All these activities have been conducted in the past using
existing "channels" such as retail stores, sales people, and
catalogs. For example, companies like Lands End and
W.W. Grainger have used catalogs to provide product
information to customers.
Companies have used the Internet in a variety of
ways to enhance supply chain performance. Dell uses the
Internet to display all its product options to customers.
Companies like Solectron and Ford have used the
Internet to increase collaboration in product design. UPS
and Federal Express have used the Internet to allow
customers to track their packages.
Our goal is to characterize how different firms can
best use the strengths of the Internet to enhance the
performance of their supply chains. We argue that the
answer is industry and strategy specific and propose a
simple framework that managers can use make this
decision.
A Strategic Framework to Evaluate Supply Chain
Opportunities from E-business
The framework starts from the premise that supply chain
decisions must be evaluated in a strategic context based
on the answers to the following three questions:
1. What is your firm's desired strategic position?
2. Give ...
Many businesses consider their telecom system a utility—an asset base that is just there and hardly worth thinking about. Yet that very nonchalance is a symptom of just how essential communications systems are. Ask most organizations what they would do without phone and Internet access, and the answer would likely be that their business would come to a screeching halt. The communications portfolio has become that important to businesses today—and, ironically, all too often taken for granted.
Similar to Marketing return On Investment Modelinig (20)
3. Methodology Overview Build database Normalize data from various sources Build parallel models to look at different variables and variable combinations Refine models (focus on DMAs with enough advertising data to make confident conclusions) Generate and test hypotheses with models Find themes that emerge from the models Translate mathematical results into actionable business recommendations Drill down to gain better understanding of relationships
12. Marketing Communications Variable Tree Share of voice, print, online, and direct mail all have an affect on sales Note how Print has an impact by itself AND in combination with Direct Mail Sales Shipments Prod B Share of voice Prod A Share of voice Print Out of pocket Direct Mail Print Out of pocket Online costs
13.
14. Other variables examined: Supply Chain An example from one set of modeling … Variable Relative Frequency AvFqcy Variable 1.83000 PRTTOOP Print out of pocket costs 1.07000 WTPcompAP Wtd average pricing vs Comp A 0.75000 Category SOV Share of voice 0.53500 BRANDSOV Share of voice 0.31000 CATTOOP Catalog out of pocket costs 0.15500 PRTCIRC Print circulation 0.08500 SOVSOM Share of voice / Share of market ratio 0.06500 WTD compaPR Wtd average proposed pricing vs. CompA 0.06500 SERSPEND Total spending on XXXX 0.04500 BACKDOL $ value of backlog 0.04500 CATQTY Catalog circulation (quantity) 0.03000 SPCompBPR Proposed price vs CompB 0.02500 DIRMAIL Direct mail circulation 0.01000 SPRICE Price vs CompS 0.00500 DMCOST Direct mail total out of pocket costs 0.00500 BACKQTY Backlog quantity (units)
15. ROMI Model This analysis yields a moderately complicated, but understandable and interpretable model Total Sales $ = 240,000,000 + 1.984 * ((Print Out of Pocket $/Print Circulation) * (Catalog Out of Pocket $) * (Weighted Pricing vs. compA/Weighted Proposed Pricing vs compA)) + $335 * (Direct Mail Cost)
18. Lead Contract Lag Although the lag between a lead and a contract varies, almost 60% of contracts are signed within 4 months of generating a lead Cume 58.2%
19. Positive Impact on Leads Total Spend General Mkt Spend TV Spend Radio Spend Internet Spend Internet CPL Each of these variables contribute to lead generation at > 85% CL
20. Influence on Leads per $ Spend Of the variables that have a positive correlation with leads, Internet (specifically CPL), Direct Marketing, Radio and TV have the highest rate of return per an additional $100K of spending
21. Positive Impact on Contracts Total Spend TV Spend Media Events Direct Marketing Internet CPL Each of these variables contribute to contracts at > 85% CL
22. Contracts Total media spend Print Media Events War Handling Media Events Media Events work by themselves, but also act as catalysts to Print and Direct Marketing
23. Contracts: Influence per $ Spend Of the variables that have positive correlation with number of contracts, Internet (specifically CPL and Search), Direct Marketing and Media Events have the highest rate of return per additional $100K spent
24. Implication: Media Influences LEADS CONTRACTS Overall Spending General Market Spend Radio TV Internet CPL Direct Marketing Media Events
The first step in the model building process is collecting all of the various data inputs. At HP, we have a ton of data – but it’s not always easy to get your arms around it. We spent several weeks identifying the data that we wanted to include in the modeling process, finding the owner of the data, and getting data feeds to OG so that they could work it into a form that would be useful in a large-scale modeling process. Once the data was gathered, a data mining tool called GMAX was used to identify the important variables and uncover some unique relationships between the variables … these “driver variables” were then exported to more traditional stat analysis packages to refine and calibrate the end models.
A quick explanation of how GMAX works – Most statistical analysis utilizes regression as the principal way to identify positive (above the line) and negative (below the line) data variables. This is generally displayed as a sloped line through a data plot.
The Optimization Group utilizes a data mining and modeling process called “Genetic Programming” (GP). This is software that literally programs itself, based on the data it is testing. OG’s proprietary GP software product is called “GMAX”.
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